“US and British regulators have agreed a common approach to limiting the damage for customers and taxpayers that is caused when a giant bank gets into difficulties....One important consequence would be that in the next banking crisis, the Bank of England would not - in theory - have to call on the Treasury to put quite so much money into a Royal Bank of Scotland or an HBOS that was facing collapse, because the creditors of those banks would be forced to become shareholders.”
BBC News - The cost of making big banks safe
Interesting turn of events. So does this mean banks would potentially be allowed to fail in the future? I suspect nothing really will change and when the sticky stuff hits the fan, the good old tax payer will be paying out again
